Houston (Platts)--7May2008

Private equity firm First Reserve infused Osage Bio Energy with a $300
million investment for the ethanol distributor to build four barley-based
ethanol and protein feed production facilities, mostly in the Southeast US,
First Reserve said Wednesday.

Osage is the largest independent distributor of ethanol in the Southeast
with 100 million gallons/year of throughput, First Reserve said in its
statement.

It currently distributes ethanol from Midwest producers and the new
facilities will give it a production beachhead on the Eastern Seaboard, the
statement added.

"The facilities will have a differential cost advantage over traditional
Midwestern corn-based facilities by using regionally grown barley," First
Reserve said.

The statement did not specify whether locations for the new facilities
have been selected and a spokeswoman declined to disclose the sites.

--Katharine Fraser, katharine_fraser@platts.com